Bill Ackman's lieutenant is leaving Pershing Square to pursue a new venture

Pershing Square Capital partner Paul Hilal is leaving the
activist hedge fund to launch his own venture, Bill Ackman wrote
at the end of his fourth-quarter investment letter.

Hilal, who roomed with Ackman at Harvard, has been with Pershing
Square since January 2006. Aside from Ackman, he's the most
senior person at the fund.

Ackman said the two had discussed Hilal's transitioning to his
own venture about two years ago.

"Paul is now ready to do his own thing and I expect him to
be a great success. Whatever he decides to do, I encourage you to
give him a close look.," Ackman wrote.

The letter didn't specify what exactly Hilal's next move would
be, though it did hint that the two may invest together.

"Whatever he decides to do, I encourage you to give him a
close look. As we have with both Mick and Scott, we expect to
partner on some new investment in the future with Paul and we
look forward to that day," Ackman wrote.

Mick McGuire and Scott Ferguson are former Pershing Square
alums who went on to launch their own hedge funds.

Here's the excerpt from the letter:

Paul Hilal joined Pershing Square initially as a consultant in
early 2006 and then full time in 2007. We started slowly because
we didn’t know how things would work because Paul’s focus prior
to Pershing Square was technology, and we had never made a
technology investment. More significantly, Paul and I had known
each other for many years having roomed together in college, and
having stood by each other’s side at our respective weddings. We
knew that it can be difficult for close friends to work for and
even partner with the other. We both thought our arrangement
could last three to five years and possibly more if things worked
out.

This January marks a full decade of Paul’s commitment to the
firm. He has been a great member of the team, and an important
contributor to the firm’s success. Paul is perhaps best known
internally for his extremely deep research into companies and
industries which have enabled us to broaden our investment
universe. Beyond Paul’s contributions and insights as a member of
the investment team, has been his design and oversight of our
analyst recruitment process that has brought us tremendous talent
including Brian Welch, Anthony Massaro and Charles Korn.

While Pershing Square has been a great training environment for
all of us including Paul, because we are a “one-product” and one
portfolio firm, there is no opportunity for a more senior member
of the team to manage his own portfolio while being at Pershing
Square until I step aside from this role, which I have no plans
to do. As a result, when members of the team have reached a stage
where they want to manage their own portfolios, they have no
choice but to leave to launch their own firm. Six years ago, Mick
McGuire left to found Marcato Capital, and nearly four years ago
Scott Ferguson left to form Sachem Head.

Beginning nearly two years ago, Paul and I initiated a discussion
about when it might make sense for him to make the transition to
pursuing his own venture. Paul is now ready to do his own thing
and I expect him to be a great success. Whatever he decides to
do, I encourage you to give him a close look. As we have with
both Mick and Scott, we expect to partner on some new investment
in the future with Paul and we look forward to that day.